firm is considering purchasing a machine that costs $55,000. it will be used for six years, and the salvage value at that time is expected to be zero. the machine will save $25,000 per year in labor, but it will incur $7,000 operating and maintenance costs each year. the machine will be depreciated according to five-year macrs. the firm’s tax rate is 40% and its after-tax marr is 15%. should the machine be bought? (please show your work in form of income statement and cash flow statement for all the years.)
